1. M.S.Unnikrishnan, MD & C E O,Thermax Limited DOWNSTREAM APPLICATIONS Of NATURAL GAS

2. Gas Infrastructure in Kerala Dec 2010 DISCUSSION STRUCTURE 1. THE KERALA CHALLENGE 2. GAS BASED SOLUTIONS

3. Gas Infrastructure in Kerala Dec 2010 DISCUSSION STRUCTURE 1. THE KERALA CHALLENGE

4. Gas Infrastructure in Kerala Dec 2010 ECONOMY Economic development improves the quality of life

5. Gas Infrastructure in Kerala Dec 2010 ENERGY But increases energy demand

6. Gas Infrastructure in Kerala Dec 2010 ENVIRONMENT Which leads to environmental damage

7. Gas Infrastructure in Kerala Dec 2010 Environment Energy Economy The solution lies in the confluence

8. Gas Infrastructure in Kerala Dec 2010 THE KERALA CHALLENGE - JOBS 34.06 43.20 36.78 27.60 23.50 21.60 P O P U L A T I O N ( Mn.) 2010 20402020 TOTAL PRODUCTIVE KERALA HAS TO GENERATE 200,000 JOBS YEAR OVER YEAR

9. Gas Infrastructure in Kerala Dec 2010 THE KERALA CHALLENGE - POWER 12300 9000 4200 2700 DEMANDDEMAND ( MW.) 2010 20402020 KERALA HAS TO CREATE 150- 300MW CAPACITY YEAR OVER YEAR 2030

10. Gas Infrastructure in Kerala Dec 2010 THE KERALA CHALLENGE - WATER 6500 6000 5500 5100 DEMANDDEMAND ( MLD) 2010 20402020 KERALA HAS A HUMANGOUS TASK TO PROVIDE WATER TO ITS INHABITANTS 2030 1800 PRODUCTION UNMET GAP

11. Gas Infrastructure in Kerala Dec 2010 DISCUSSION STRUCTURE 2. GAS BASED SOLUTIONS

12. Gas Infrastructure in Kerala Dec 2010 Natural Gas

13. Gas Infrastructure in Kerala Dec 2010 Natural Gas

14. Gas Infrastructure in Kerala Dec 2010 NATURALGASNATURALGAS ENERGY CHEMICAL DERIVATIVES GAS BASED SOLUTIONS

15. Gas Infrastructure in Kerala Dec 2010 DISCUSSION STRUCTURE 2. GAS BASED SOLUTIONS ( A ) ENERGY

16. Gas Infrastructure in Kerala Dec 2010 Temperature Manipulation 37% Transportation 20% Electricity 16% Losses 26% GLOBAL ENERGY CONSUMPTION PATTERN Source: Wikipedia

17. Gas Infrastructure in Kerala Dec 2010 Gas seen as the preferred energy source A. Economical (USD/mmbtu) B. Lowest Carbon Footprint among fossil fuels (kgCO2/Kwh fuel input)

18. Gas Infrastructure in Kerala Dec 2010 NATURAL GAS NATURAL GAS Cooling Heating Power CHPC Transportation Natural Gas, the energy source Water

19. Gas Infrastructure in Kerala Dec 2010 DISCUSSION STRUCTURE 2. GAS BASED SOLUTIONS ( B ) CHEMICAL DERIVATIVES

20. Gas Infrastructure in Kerala Dec 2010 Natural Gas : The Chemical Route POLYMERSCHEMICALS FERTILISER

21. Gas Infrastructure in Kerala Dec 2010 Natural Gas : The Chemical Route POLYMERS Fabric

22. Gas Infrastructure in Kerala Dec 2010 1.POLICY FRAMEWORK TO MOTIVATE INDUSTRY TO GENERATE THEIR ENERGRY NEEDS 2. STATE PROMOTED PETROCHEMICAL COMPLEX SIMILAR TO SABIC IN PPP FORMAT 3. DOWNSTREAM CLUSTERS PROMOTED BY KSIDC FOR MSME FOR (i) CHEMICAL, (ii) PLASTICS TOWARDS PROLIFERATION OF NG

23. Gas Infrastructure in Kerala Dec 2010 Thank You

24. Gas Infrastructure in Kerala Dec 2010 Gas to drive the industrial growth in Kerala as it has done for … Gujarat Most developed gas market: 27% of country’s gas based power generation, 30% of petrochem business, over 50% of sponge iron manufacturing capacity Combined heating, cooling & power majority used option by commercial establishments Maharashtra Second highest gas based power generation capacity MIDC following Gujarat model in developing transmission network Tamil Nadu Fifth highest gas based plant capacity 31 industries connected to the NG supply infrastructure Andhra Pradesh Emerging as a second gas hub Focus on industrial and domestic consumers

25. Gas Infrastructure in Kerala Dec 2010 Route Map Of Gas Distribution Network Design Capacity: 16 MMSCMD including 4 MMSCMD as common carrier Phase I : 94 km pipeline from Kochi to Alwaye (Tap-off) with spur lines / feeder lines to Alwaye (SEZ Vyapin Kochi, GTN Textiles) Udyogmandal (Premier Tyre Kalamassery, REL, FACT-I, Sudchemic & Travancore Cochin) Binanipuram (Cochin Minerals & Binani Zinc), Ambalamedu (Kerala Chemicals & Protein Ltd. Kakkanad, FACT-II, BPCL Refinery, Hindustan Organic Ltd., Philips Carbon & MILMA) Phase II 1018 km pipeline from Alway (Tap-off) to Kanjirrkkod, Kanjirrkkod to Mangalore and Kanjirkkod to Palghat / Palakkad with spurlines / feeder lines to Thrissur (Apollo Tyres), Kottakal (Aryavaidsala), Kozhikode (KESEB Power Plant), Kannur (Western Plywood, Power Projects), Mangalore (MCF) Palakkad (Indosil, Precoat & steel industries).

26. Gas Infrastructure in Kerala Dec 2010 Gas Consumption Trend - Sector-wise Industry2008-09 (BCM)% of Total Energy Purposes Power Generation12.6029.3% Industrial Fuel5.9113.8% Tea Plantation0.150.4 % Domestic Fuel0.10.2% Gas industry(Process)5.7113.3% Others1.543.6% Total Energy Use26.0160.54% Non-energy Purposes Fertilizers9.1021.1% Petrochemicals1.112.6% Others6.7615.7% Total Non-energy Use16.9539.5% Grand Total42.96100% *Source: Ministry of Petroleum & Natural Gas ** 2008-09 data Is provisional

27. Gas Infrastructure in Kerala Dec 2010 Significant economic gains across sectors Power Generation Industrial Process Heating Transport Household Source: IIFL Research 200 MW power generation from 1 mmscmd of gas can save 35% energy cost Decentralized power source using gas engine & gas turbine offer higher cycle efficiency fulfilling both Heating, Cooling & Power needs Substitutes expensive fuel-oil Opex down by 20% at current fuel –oil prices 1 mmscmd can runs 0.15 m vehicles Save emission of 25% CO2 1 mmscmd can support 0.9 m HH for cooking Lower LPG subsidy by Rs. 6.3 bn Cooling Chillers using Natural gas and waste heat Gas driven heat pumps